India’s export wave will be powered by MSMEs

India’s micro, small and medium enterprises have long played an important role in the country’s economic progress. They create jobs, support local communities, strengthen manufacturing value chains and reflect the entrepreneurial energy that exists across India. As the country looks to expand its role in global trade, MSMEs can help bring more India-made products to customers around the world.

The scale of the sector is significant. IBEF notes that India’s MSME sector contributes around 35.4% of manufacturing output, 48.58% of exports and 31.1% of GDP, with more than 7.47 crore enterprises employing 32.82 crore people. These numbers point to a sector that is already deeply connected to India’s production and export ecosystem.

The recent export momentum is encouraging. According to a SMERA Ratings study reported by a media publication, the number of exporting MSMEs increased from 52,849 in 2020–21 to 1,73,350 in 2024–25, while MSME exports grew from ₹3.95 lakh crore to ₹12.39 lakh crore during the same period.

The opportunity now is to help more MSMEs participate in cross-border commerce in a structured and sustainable way. Many small businesses already have strong products, category knowledge and the ambition to grow beyond domestic markets. What they often need is the right support to understand international customer expectations, manage documentation, improve packaging, plan inventory, access reliable logistics, and use digital tools more effectively.

This is where marketplaces, training, logistics and digital capabilities can make a meaningful difference.

Digital marketplaces can help smaller businesses reach customers beyond traditional trade channels. They can also provide sellers with demand signals, product performance insights and a more structured way to build visibility and trust. Importantly, they are changing the economics of international expansion by giving MSMEs access to services such as storage, fulfilment, logistics and advertising on a pay-as-you-grow basis. This can lower upfront investment requirements, enable businesses to align costs with growth and reduce barriers to entering international markets.

For MSMEs that may not have had easy access to international buyers in the past, this creates a more accessible pathway to test, learn and scale globally.

Research points to the benefits of digital integration. ICRIER’s annual MSME survey, based on 2,365 MSMEs across 12 states and 24 cities/centres, examines the performance of firms integrated with e-commerce platforms compared with non-integrated firms, including their ability to access finance and international markets. This reinforces an important point: digital adoption can support business growth, but it works best when sellers also have the capabilities to use these platforms well.

Training is therefore central to the export-readiness journey. Cross-border commerce brings requirements that may be new for many MSMEs, including product cataloguing, documentation, pricing, labelling, compliance, packaging, returns and customer service. The Directorate General of Foreign Trade’s (DGFT) E-Commerce Exports Handbook for MSMEs is one example of how practical export guidance is being made more accessible, including through versions in Indian languages such as Hindi, Gujarati, Kannada, Marathi, Tamil and Telugu.

Logistics is another important enabler. For customers, delivery is part of the overall experience. For sellers, dependable logistics can help improve planning, protect margins and build confidence in serving international markets. India ranked 38th out of 139 countries in the World Bank’s 2023 Logistics Performance Index, improving six places from 2018, according to the Press Information Bureau. Continued progress in logistics, customs processes, tracking and delivery reliability can make cross-border commerce more practical for businesses of different sizes.

There is also a clear opportunity to help more enterprises move up the growth curve. A NITI Aayog report on medium enterprises notes that medium enterprises represent only 0.3% of MSMEs but contribute 40% of MSME exports. The report highlights priorities such as tailored financial tools, technology integration, testing facilities, research and development, skill development and a centralised digital portal. This suggests that when enterprises receive the right support, their contribution to exports can expand meaningfully.

Capacity-building programmes can play a useful role in this broader ecosystem. Walmart Vriddhi, for example, has trained more than 115,000 MSMEs since 2019 with support focussed on digital learning, business tools, mentorship and market access. Such initiatives can help sellers build confidence, strengthen operations and prepare for new growth opportunities.

The larger opportunity will require collaboration across the ecosystem. Government bodies, marketplaces, logistics providers, financial institutions, skilling organisations, export promotion councils and industry associations all have a role to play. MSMEs need access to customers, but they also need guidance, infrastructure, financing, data and operational support that can help them serve those customers consistently.

India’s MSMEs bring strong products, local expertise and entrepreneurial resilience. With the right combination of market access, training, logistics and digital tools, more of these businesses can participate in global commerce and build lasting customer relationships.

The next phase of India’s export growth can be more inclusive, more capability-led and more connected to the energy of small businesses across the country. MSMEs are already important contributors to India’s trade story. With continued ecosystem support, they can play an even larger role in taking India-made products to the world.

(The author is India Head, Cross-Border Trade, Walmart Marketplace. Views are personal.)